FTX is reportedly discussing acquiring Robinhood

Crypto derivatives exchange platform FTX is reportedly planning to acquire the popular trading application Robinhood Markets.
Crypto derivatives exchange platform FTX is reportedly planning to acquire the popular trading application Robinhood Markets.

Crypto derivatives exchange platform FTX is reportedly planning to acquire the popular trading application Robinhood Markets. The intended takeover came into the picture when Bloomberg reported that FTX is conducting internal discussions about whether to buy Robinhood, the platform that introduced millions of investors to cryptocurrencies.

Despite there having been no announcements from any of the companies about the takeover, FTX is reportedly taking the matter seriously. The anonymous source from the report clarified that the exchange has not yet approached Robinhood with any proposal and that it could still finalize against the pursuing a deal.

SBF’s comment on the Robinhood takeover

Moreover, FTX CEO Sam Bankman-Fried (SBF) has commented on the matter and said that the exchange is excited about a potential partner with Robinhood, but there are no active merger proposals yet on the table. He stated:

“We are excited about Robinhood’s business prospects and potential ways we could partner with them […] That being said, there are no active M&A conversations with Robinhood.”

SBF’s FTX s known for its acquisition deals. Despite the ongoing crypto bearish season, the exchange shows no signs of slowing down its expansion plans. As TheCoinRise reported recently, it is reportedly seeking to purchase a stake in BlockFi. More solidly, FTX US acquired license clearing firm Embed last week.

Moreover, in June itself, FTX announced the acquisition of Alberta-based restricted crypto trading company Bitvo, Inc.

FTX declared earlier this month that it would not be cutting its workforce despite widespread layoffs in the crypto exchange market. On June 6, Bankman-Fried tweeted that his exchange intended to “keep growing” going forward.

The connection between FTX and Bankman-Fried and Robinhood is not new. It was revealed in May that the CEO of FTX had invested $650 million in a 7.6 percent stake in the discount brokerage. At the time, SBF claimed that although the purchase demonstrated his opinion that Robinhood is an “attractive investment,” he had no plans to alter or take power over the company.